1.Accounting information is used by

1.Accounting information is used by
a.business b.government regulation agencies c.labor unions d.all of above
2.An account has two sides called the
a.debit and credit b.asset and liability
c.revenue and expense d.journal and ledger
3.A business has assets of $140000 and liabilities of $80000.How much is its owner’s equity?
a.$0 b.$140000 c.$80000 d.$60000
4.The purchase of office supplies (or any other asset ) on account will
a.Increase an asset and increase a liability
b.Increase an asset and increase owner’s equity
c.Increase one asset and decrease another asset
d.Increase an asset and decrease a liability
5.Which of the following accounts is a liabilities account
a.Prepaid Rent b.Advertising Expense c.Accounts Payable d.Drawing
6.A merchandising company earns its revenue mainly by selling or rending
a.fixed asset b.inventory c.office supplies d.service
7.Which of the following purchase discount is correct for a $2000 purchase with credit terms of 3/15 ,n/30 if you pay the money within 15 days after the invoice day
a.$15 b.$45 c.$0 d.$60
8.Under FOB shipping point ,who pays the shipment cost
a.buyer b.seller c.both a.and b.d.none of the above
9 If a buyer choose to pay on account within discount period ,he will get
a.purchase discount b.purchase allowance
c.purchase return d.sale discount
10.Beginning inventory $10000,purchase $20000,purchase return and allowance $500,
purchase discount $200,freight in $4000,ending inventory $5000.please count the cost of goods sold.
a.$19500 b.$28500 c.$28300 d.$20000